How we fund Home Care Packages
The total amount of funding in an individual package budget is made up of:
- a government subsidy, including supplements (if eligible)
- fees paid by care recipients.
Any funds remaining at the end of the month carries over to the next month – this is called unspent funds.
Subsidy
We pay a government subsidy on behalf of each care recipient assigned a Home Care Package. Approved providers submit a claim to Services Australia after they have delivered services each month.
Find out how we calculate the Home Care Package subsidy and how to claim.
Subsidy increase to pass on wage rise
The Home Care Package subsidy will rise on 1 January 2025 and again on 1 October 2025. This will help support increased award wages, following the Fair Work Commission’s Aged Care Work Value Case Stage 3 decision.
Read more about the subsidy increase.
Supplements
We pay supplements on behalf of eligible care recipients to help approved providers with the cost of meeting specific care needs.
Find out who is eligible for supplements and what they are.
Subsidy reductions
In some cases, we reduce the government subsidy available for approved providers to claim against.
This could be because the care recipient contributes to their care costs (that is, income tested care fee) or is entitled to compensation payments.
Find out about subsidy reductions and what you need to do.